Objective Questions with Answers on Law Of Contract - 59

1) The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promiso : 

A) All damages which he may be compelled to pay in any suit in respect to any matter to which he promise 

to indemnity applies

B) All costs which he may be compelled to pay in any such suit

C) All sums which he may have paid under the terms any compromise of any such suit

D) All of the above

Answer : D

2) A contract to perform the promise, or discharge the liability, of a third person in case of default is known as :

A) Contract of indemnity

B) Contract of guarantee

C) Contingent contract

D) Quasi contract

Answer : B

3) Section 128 of Indian Contract Act 1872 provides :

A) Surety's liability

B) Continuing guarantee

C) Revocation of Continuing guarantee

D) Consideration for guarantee

Answer :  A

4) A guarantee which extends to a series of transaction is known as :

A) Specific guarantee

B) Continuing guarantee

C) Both (A) and (B)

D) None of the above

Answer : B

 

5)  The death of the Surety operates in the absence of any contract to the contrary, as a Revocation of a Continuing guarantee, so far as regards future transactions, it is given in :

A) Section 131

B) Section 132

C) Section 133

D) Section 134

Answer : A